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Sunday, March 20, 2011

AT&T to purchase T-Mobile USA for about $39 billion, (NYSE: T)

AT&T Inc (T.N) said on Sunday it would buy Deutsche Telekom AG's (DTEGn.DE) T-Mobile USA in a cash-and-stock transaction worth about $39 billion. The purchase price includes a cash payment of $25 billion with the balance to be paid using AT&T common stock. AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion. As part of the deal, Deutsche Telekom will get about 8 percent stake in AT&T, and a Deutsche Telekom representative will join the AT&T board. AT&T can increase the cash component so long as Deutsche Telekom receives at least a 5 percent equity stake in it. The agreement has been approved by the boards of both companies. (Reporting by Paritosh Bansal and Maria Aspan; Editing by Marguerita Choy)